By Nicolas Abington | Crescent City Capital Market Analyst Intern
In October, I wrote an article introducing the idea that there was an inverse correlation between stock market climate and cryptocurrency price performance. Recently the stock market has experienced one of the most relieving pieces of news that it’s had all year. Trade discussions with China seem to be improving causing healthy pushes to top-performing companies. Even with Trump’s recent remarks Tuesday about a delay with their conclusion until 2020, stocks were able to steadily push past with minimal losses by day’s end. The resistance to major news fluctuating the stock price reflects the market’s health bounce back to a calmer less volatile time reflected in the VIX or volatility S&P 500 index.
Unfortunately for cryptocurrencies, this means that their prices have recently dropped across the board with few having a positive performance over the past week. The good news is that there seems to be a common trend between the health of the economy and the success of crypto. Going into the coming months, we will have to keep a close on eye on more than just the common boards to establish a hard connection between stock market health and cryptocurrency performance.